The Following Information Was Obtained from Moreau Manufacturing, Inc Calculate Moreau Manufacturing's Total Product Costs

question 57

Multiple Choice

The following information was obtained from Moreau Manufacturing, Inc.: $$\begin{array} { | l | r | } \hline \text { Advertising Costs } & \$ 9900 \\\hline \text { Indirect Labor } & 53,000 \\\hline \text { CEO's Salary } & 620,000 \\\hline \text { Direct Labor } & 40,000 \\\hline \text { Indirect Materials Used } & 7500 \\\hline \text { Direct Materials Used } & 65,000 \\\hline \text { Factory Utilities } & 760 \\\hline \text { Factory Janitorial Costs } & 1200 \\\hline \text { Manufacturing Equipment Depreciation } & 3100 \\\hline \text { Delivery Vehicle Depreciation } & 1000 \\\hline \text { Administrative Wages and Salaries } & 24,000 \\\hline\end{array}$$ Calculate Moreau Manufacturing's total product costs.

• A) $170,560
• B) $654,900
• C) $105,000
• D) $165,500

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Definitions:

Fixed Assets

Fixed Assets, also known as non-current assets, are long-term tangible property used in the operation of a business and not expected to be converted to cash within a year.

Shareholders' Equity

Shareholders' equity represents the residual interest in the assets of a company after deducting liabilities, essentially what is owned by shareholders.

Intangible Assets

Non-physical assets possessed by a business, such as patents, trademarks, and goodwill, which can generate economic benefit.

Cash Flow

The total amount of money being transferred in and out of a business, especially as affecting liquidity.